The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-04-14
PROFIT-SHARING.
An Account of Some Experiments in CO.
operation, and Their Results.

An Account of Some Experiments in CO.
operation, and Their Results.
Philadelphia Press.
Mr.. John Wanamaker. by admitting his en-
ployes 10 profit sharing, has broken new ground
In the history OF cooperation. Cooperation, in
its many forms, has been limited to producto
and distribution, save the operative bank
ing system OF Germany and our own mutual
insurance systems and building associations
show the application of the cooperative prnci-
pie to the az accumulation of capital. But while
the past offe rs guide save by inference for
Mr.. Wanam aker's experiment all that has been
done points to its success. Other things being
equal, the ran who adds the personal devotion
of employees TO all other odds in his favor
has a better chance of success than the
man who does not do this. By high
wages And special consideration most
successful employers strive to do this, but Mr..
John Wanamaker with his usual skin at organ
lZinG In working shane what others feel and see
mistily. has put this consideration into def
mite. tangible form which must appeal most
powerfully to every man who works for him.
such a step is great advance along the path
John STU art Mill marked out in saying OF our
present, system: 1.-The industrial economy which
divides society absolutely into two portions, the
payers of wages and the receivers of them. the
first counted by thousands and the last by
millions, is neither fit capable of indefinite
dura tic.n, and the possibility of changing this
System for of combination without depend
ence a nd unity of interest instead of organized
hostility depends altogether upon the future de-
veop nents of the partnership principle
Hit herto. in applying cooperation to the work
of dis tribution only two factors the capital en-
oarkrd and the customer, have heen considered.
The third, the salesman, has been overlooked.
business of 100000. 900, all of whose profits
are divided between customers. and those who
provided the original capital, is done by English
Cooperative stores but their clerks paid like
those in ary other establishment. The five
''argest of these London companies all joint
Stock companies. in 1882 sold $23, 1872. go of mer
chandise, on which they reaped gross profits of
$3.50 Geo. in which employees do not share as
such. The principle of cooperation has given
| all these organizations advantage which, in
1882 had raised their total number in England
to ~ retail societies, with trade of Sol 100000,
while wholesale societies had trade of Sl7,-
SOC, 000, and the mem oership of these organiza-
tons is one in nine OF population in
England, and one in eight in Scot
! land. Cooperative organizations for the
same purpose distribution a cheap basis by
| saving the retail proft--do a trade in this coun-
| try of about $40 600, 600 One of these. the
Philadelphia Industrial Cooperative Society,
conducted by Knights Of Labor is pronounced
| by Prof r. T. Ely lone of the most brilliant ex-
amples of success achieved by cooperation"
The Changers. with their great store In Balti-
more doing a trade of 81 900, 600 in two years
after it had been started capital of Sl2 and
| their Granger Bank in California, with capital
of So 600. paid up, furnish another co-opera-
tive success. But in all these. and in lesser en-
terprises like them, the empoye has only his
salary, and the apt complaint is made by man
in Massachusetts managing CO operative labor
store that he did not dare to look welfed for
fear he would hear complaints that he was
overpaid. complaint with some of whose
phases Mr. Powderly is familiar
| Not less successful have been the experiments
In profit sharing where production is concerned
NJ Godns community at Guise, in which over
l,400 persons are interested in an iron foundry,
all of whose profits above per cent capital
are divided among employees, with system OF
retiring pensions. is the largest and most con-
spicuous instance of cooperation in production.
but it is only one of fifty sixty like enterprises
in France. 1t is now forty five years since Nj
Lecaire founded the great house-pautiug firm
of Paris, whose employees, originally eighty, have
averaged thousand number for years
past, and who received 1929, $500, 225 in cash
and $627, 900 paid to the fund which provides
with retiring fund every man over sixty five
or who has laborea twenty-five years or has me
with an injury. In this period the addition o.
these payments to wages has amounted to ove
20 per cent. A great printing firm. Maison Chalk
with 334 employees in 1888 had distributed
similar basis s3l, 2l0 in cash aud si29, 455 in ben
| efts from 1872 to 1881, with piano works an6
music box-makers telling a ike story.
The imitation of these establishments in Eng
land has. up 20 a recent time. met with Ill sue
cess Messrs Briggs. English colliery owners
beginning In lo6o with profit sharing on rslnl
market, were forced to abandon IL in 1874 wher
their workmen refused to accept lower wager OF
falling market Fox Head 81 Co., an Encisl
Iron working firm, lad precisely similar ex
| perience, and this. regret TO say, the re
| suit Of proftsharing in well-known machine
shop in this city. But. in spite of failure tn
| principle has made its WAY. William Thompso
| & Sons, great wool manufacturers of Hudders
| field, have turned their works into co-aperativ
enterprise aud Messrs- Hoyle of Manchester
attribute their success in running At a profit il
dull times to profit sharing with their hands
! Spinning. mills have yet TO be manage